Overview
Performance Metals International Inc. (PMI) recovers precious metals from spent automobile catalytic converters. PMI developed its proprietary hydrometallurgical process to extract, refine and sell Platinum, Palladium, Rhodium (PGMs) and other metals to clients all over the world. Currently, 39% of the world’s Platinum Group Metals (PGMs) are recovered through various recycling methods, but none are as clean/green, efficient and effective as our solution. The chemical formula we employ is designed to process 90+ tons of raw material per month, generating $100-200 million per year and profits of more than 25%.
Problem
Across the globe there is great demand for PGMs but little supply. Aside from recycling, traditional Platinum mining is the only way to obtain these metals, which are considered “industrial metals” because they are used for a wide range of industrial purposes due to their unique qualities. With Covid-19 related shipping issues and chip shortages still lurking, the strong push towards electric vehicles, the worldwide decarbonization efforts which heavily involve some of largest countries and now the Russia/Ukraine crisis (Russia is a very large Platinum producer), the PGM shortage is getting larger and larger.
Solution
Performance Metals Inc. (PMI) created a solution that can efficiently recycle 3-5X more PGM’s than any other refinery within any given time period. Where others take 35-60 days to complete a cycle, PMI can go to market every 12 days. Our proprietary process that we like to call “magic”, not only extracts the PGMs effectively, but also produces very little waste. Other competitive facilities are wrought with floating air particles that require the use of N95 respirators and magnetic boots to collect the metal dust that settles to the floor. Our solution produces no toxic dust, is clean/green and captures 15% more of the metal material then others.
Suppliers & Customers
We already have an established network of suppliers who are ready to sell their raw materials to us as soon as we are ready to buy. We also have the clients, they are ready, willing and able to purchase our product as soon as we are ready to sell it, and in unlimited quantities. We receive payment the day of sale, via bank wire transfer.
Opportunity
Platinum will continue to be used in industrial catalysts, catalytic converters, semiconductors, hydrogen fuel cells, jewelry, electronics and in countless other ways. Spot prices are expected to increase in 2022 and beyond. While 2021 Demand for PGMs was $21B, the Supply was only $14.6B, representing a shortfall of $5.4B in available metals. 2022 and beyond Demand is growing and although production is high, it will not be enough to lessen that gap, especially considering 10% of PGMs are coming from Russia. South Africa is still the largest producer delivering 73% of these metals. With an average weighted and combined price of $2,839 per ounce, PMI will capture at least 2% share of the market by year 3. This will open up many additional highly profitable opportunities, including but not limited to a possible IPO.
Competitive Advantages
PMI has many advantages over its competition, but some of the key points are:
- Proprietary technology/formula
- Higher PGM yield, no lost metal dust
- Lower CAPEX and OPEX
- Safety, much lower chances of bodily injury
- Eco-Friendly, Clean and Green
- Strong supplier relationships
Business Model
The business generates revenue each time it delivers its PGMs to its clients. There is no delay in payment, we get paid the same day we deliver the product. Before delivering, we utilize our Spectrometer in our own onsite laboratory to weigh, calculate and estimate the anticipated revenues based on current spot prices. Then upon delivery, the customer will assay the product as well in their lab. The process takes 2-3 hours for them to process the results, generate the paperwork and distribute payment to us via wire transfer. As a general rule of thumb, our experience has shown that our average ROI on each unit is 25%. In addition to the sale of PGMs, the business also makes some a small portion of its revenues through the sale of scrap metal, typically enough to cover most of the expenses associated with operating the facility (lease and utilities). Overall, our process, which includes our hydrometallurgical formula and the custom equipment setup, is highly efficient and effective and directly ties in to higher profitability than our competitors. We can do more with less, all because of the “magic” process we employ.
Getting Started
The business is capital intensive at startup but once it is fully operational the main expenses are the Cost of Goods Sold and normal Operating Expenses. CAPEX includes acquiring a large manufacturing facility, equipment, chemicals, office fixtures/furnishings and catalytic converters. COGS includes catalytic converters and production costs. OPEX includes lease/debt service, office/administrative costs, payroll, utilities, office supplies, sales and marketing, legal, accounting and insurance. We will require the initial 6-8 months to become operational. By month 9 we will have our 1st batch of PGM's processed and sold. As we increase revenues and our buying power, we will increase the volume of catalytic converters we purchase and negotiate better prices with our suppliers, further increasing our profits and revenues.
Timeline
Receive Funding: September 01, 2022
Acquire Facility: December 01, 2022
Order Equipment and Raw Materials: January 1, 2023
Setup Office and Laboratory: February 1, 2023
Setup Equipment: March 1, 2023
Hire & Train Staff: April 1, 2023
Begin Operations: May 1, 2023
Private Placement Offering:
- Offering 12,510,000 Shares for purchase
- Shares are sold in blocks of 15,000 at a price of $2.00 per share
- Minimum investment is $30,000
Hot off the Press
POTUS Invokes the Defense Production Act
https://www.energy.gov/articles/president-biden-invokes-defense-production-act-accelerate-domestic-manufacturing-clean
Excerpt from the article above regarding the increasing need for PGMs:
· Electrolyzers, Fuel Cells, and Platinum Group Metals — Electrolyzers, fuel cells, and platinum group metal (PGM) catalysts are vital for increasing domestic production and utilization of clean hydrogen, a versatile energy carrier. Clean hydrogen produced through electrolysis is projected to contribute significantly to achieving U.S. decarbonization goals. President Biden’s actions supporting domestic supply chains for electrolyzers, fuel cells, and PGM catalysts will enhance national and energy security by reducing U.S. reliance on imported fossil fuels, particularly Russia (the world’s second-largest producer of PGMs) and China. Consumers will benefit from clean hydrogen’s price stability relative to fossil fuels, cost reductions as the hydrogen economy scales up.
Contact Info
Tony Gioia, CEO
(407) 212-1194
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